How BH Group Intends on Striking Real Estate Gold

BH Group, led by husband and wife duo Isaac and Liat Toledano, had an extremely robust 2024, making the firm one of Florida’s most active real estate developers. From luxury waterfront developments to pioneering emerging markets, BH Group is reshaping Florida’s landscape through meticulous strategy, prime partnerships, and an unwavering focus on iconic real estate that transcends market fluctuations.

Current Development Activity 📈

• Residences at Six Fisher Island [with Related Group] - Broke ground, obtained $400M loan 
• Ritz-Carlton Residences in West Palm Beach [with Related Group] - Purchased development site for $34M and received board approval for project plans
• Icon Beach Residences in Hollywood Beach [with Related Group] - Launched residential sales
• W in Pompano Beach [with Related Group] - Signed W brand and received board approval for project plans
• Ritz-Carlton Residences in Palm Coast [with Related Group] - Announced partnership for oceanfront condominium project
• Greenville at Presidential Estates [with Lennar] - Launched residential sales
• Olana in Naples [with Kolter] - Received initial approval on project plans for ultra-luxury waterfront condominium 
• Solana Bay [with Kolter] - Launched residential sales of luxury waterfront condominium 
• Diplomat Beach Resort in Hollywood [with Related Group] - Received approval for a second branded condo-hotel tower
• Southplace City Center in Cutler Bay [with Electra America] - Closed on $125 million predevelopment loan
• Plantation City Center in Plantation [with Related Group] - Received approval for new plans with over 500 apartments
• Office Depot Mixed-Use Project [with Related Group & PEBB Enterprises] - The project plans feature 500 apartments, 43,000 sq ft of retail and restaurant, a 36,400 sq ft fitness center. The process will begin with demolishing a 215,000 sq ft office building, with 2 office buildings to remain intact.

Why Florida? A Market of Limitless Opportunity 🌟

For decades, Florida was seen as a destination for sun and fun. Today, it has evolved into a magnet for businesses, families, and investors. Toledano, who has concentrated solely on the Florida market, credits the state’s rapid growth to a confluence of favorable tax policies, a desirable climate, and an unmatched quality of life.

Tolendano notes how Florida’s appeal goes beyond weather. “[It’s about] enjoying life and being in a safe place.” Coupled with increased opportunity and a high standard of living that surpasses most other places in the U.S., corporations, families, and high-net-worth individuals from states like New York, California, and Texas continue to migrate to Florida, underscoring its position as an economic powerhouse.

Prime Real Estate: The Non-Negotiable Ingredient 🔑

BH Group’s philosophy revolves around securing and developing prime locations, often waterfront, that promises enduring value. With 31 active projects, including high-profile collaborations with Related Group, their portfolio spans from luxury residences like the Residences at Six Fisher Island to transformative urban developments such as the $1 billion Southland Mall redevelopment in Miami’s Cutler Bay.

“We are never going to settle on the location,” Toledano emphasizes. BH Group’s strategy focuses on waterfront acquisitions where demand is undeniable as they remain aspirational and resilient.

Emerging Markets: Vision Meets Execution 🚀

BH Group’s foresight extends to identifying and cultivating emerging markets. Toledano highlights areas like Riviera Beach and Palm Coast as prime examples that are positioned for explosive growth.

“In Singer Island, Riviera Beach, we see potential because not everyone can afford Palm Beach,” he explains. Tolendano discusses how he is tapping into pent-up demand in areas with untapped potential while bringing a household brand to the mix.

Collaboration and Strategic Partnerships 🤝

BH Group’s approach to development hinges on collaboration with industry-leading partners. Joint ventures with firms like Related Group, Lennar, PEBB Enterprises, Kolter and more, enable the company to leverage expertise and execute at the highest level. 

“Our business model is we like to buy prime real estate and then we join forces with the right partner who can help us execute and take the project all the way to the finish line,” says Toledano.

Is BH Group Focusing on Retail?🛍️

If you've seen the firm divert from their typical residential investments, and purchasing retail sites, there's a reason for that. Toledano says, "We are not a typical cap rate buyers. If we buy retail properties, it's always because there is a development right. We acquired an office building in Aventura and next to it, we're going to build a high-rise condominium. This is what we are always doing. We're very focused on value add. As I said before, we will never settle on the location. It's not easy to find - prime real estate. And this is why you need to be creative and create deals. So sometimes, we have no choice. We will buy a retail center. We will buy an office building." 

The Future of Florida Real Estate🔮

As Florida continues to attract domestic and international buyers, Toledano is confident that the market’s momentum will endure. From branded developments on Florida’s coasts to mixed-use urban projects in Miami’s Cutler Bay and Plantation, BH Group remains at the forefront of the state’s real estate evolution.

Advice for Aspiring Developers 🏗️

“Personally, I work 17, 18 hours a day. I love what I do. I go to sleep at night and I wait for the morning to come. The best advice I can give is to be focused. In order to be successful, you need to be focused and stick to the plan. Don't change your strategy every week or every month.  Between our friends, partners and investors, we’ve been approached many times to invest in other states. Today, everybody thinks that I'm a genius, but thank God, part of it’s because I didn't go into other states and other markets,” says Toledano.